Southeast Asia Making Significant Smart Grid Investment

Southeast Asia Making Significant Smart Grid Investment

A new study by the Northeast Group is forecasting that Southeast Asian countries will invest $13.6 billion in smart grid infrastructure over the next ten years. This investment will include smart meters and modernizing power transmission and distribution networks with sensors, communications, and software. Thailand, Indonesia, Malaysia, Singapore, the Philippines, and Vietnam are expected to be the largest markets by 2024.

Northeast Group president Ben Gardner explains, Smart grid investment over the next decade will shift from North America and Europe to emerging market regions. Southeast Asian countries are just beginning on the path of modernizing their electric infrastructure. Strong GDP growth of nearly 6 percent through 2018 and corresponding growth in electricity demand will help lay the foundation for investment. Electrification programs and growth in renewable resources will also drive investment. Singapore is currently leading the region.

According to the report, Southeast Asian countries will deploy more than 37 million smart meters in the next decade, accounting for an $8.8 billion investment. It is also anticipated the region will invest $2.5 billion in advanced monitoring and control of the distribution network with sensors and communications. Other smart grid segments will account for an additional $2.2 billion investment.

The Northeast Groups also reports: Several countries in the region have drafted smart grid roadmaps and pilot projects are widespread. Regulatory frameworks are still developing but momentum will grow over the next several years. Both utilities and vendors are already working together to ensure preparedness when regulations are finalized.